What Happens to Crypto If the CLARITY Act Fails This Week? Hougan Explains

Matt Hougan said the bill's failure could unsettle markets briefly, but clearer odds may remove uncertainty and support a fall rally. Bitwise Chief Investment Officer Matt Hougan said the CLARITY Act could fail to pass this week, but that would not mean the end of the legislation or the crypto industry’s progress. The US Senate is scheduled to leave for its August recess on Friday, August 7, and return on September 14. Under Senate rules, lawmakers must file for cloture on the CLARITY Act by Wednesday, August 5, for the bill to have a chance of receiving a vote before the recess. Crypto Without Clarity A failure this week would also not necessarily end the act. Hougan expects the legislation to enter a “walking dead” state. That could lead to fresh efforts to pass it in September or during a December lame-duck session. Congress often combines several measures into year-end omnibus legislation, and creates another possible route for the bill. For Hougan, the bigger issue with that uncertainty is its effect on investors. Some professional investors are holding back from crypto because they do not want to commit capital while the outcome of CLARITY remains unclear. They may wait to se...